Community-level social capital and investment decisions in equity crowdfunding

Massimiliano Barbi, Valentina Febo and Giancarlo Giudici
Additional contact information
Valentina Febo: EM Normandie Business School
Giancarlo Giudici: Politecnico Di Milano

Small Business Economics, 2023, vol. 61, issue 3, No 10, 1075-1110

Abstract: Abstract We investigate the role of community-level social capital in individuals’ investment decisions in equity crowdfunding. We exploit a hand-collected dataset of individual investments pledged to successful campaigns in Italy between 2014 and 2018. Individuals born in provinces with high social capital invest more substantially in riskier campaigns. Contrary to inborn social capital, social capital in the province where investors live has no impact. This evidence survives several robustness checks and highlights the crucial role of an individual's cultural traits in fostering investment in equity crowdfunding.

Keywords: Equity crowdfunding; Community-level social capital; Generalized trust; Culture (search for similar items in EconPapers)
JEL-codes: G32 L26 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s11187-022-00724-4 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Community-level social capital and investment decisions in equity crowdfunding (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:61:y:2023:i:3:d:10.1007_s11187-022-00724-4

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-022-00724-4

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().